COLUMBUS, Ohio — Corporate One FCU said it has successfully closed its inaugural multi-seller prime auto loan securitization, a $335 million transaction it said marks its entry into the auto asset-backed securities (ABS) market.
Corporate One, which called the sale a “milestone in its strategy to expand credit union access to capital,” said the securitization aggregated high-quality prime auto loan collateral from Wright-Patt Credit Union, Everwise Credit Union, and Day Air Credit Union, and its ability to “pool assets across multiple sellers and deliver institutional-scale execution.”
“Auto loan securitization transforms loan portfolios into liquidity—helping credit unions manage balance sheet risk and unlock new growth opportunities,” President and CEO Melissa Ashley said in a statement. “Historically, only the largest institutions have accessed these benefits. Our multi-seller platform changes that, enabling credit unions of all sizes to participate on equal footing.”
Strong Demand
According to Corporate One, the deal was met with strong investor demand across all tranches, underscoring the value of the securitization and investor confidence in the collateral quality, underwriting, and servicing standards. The transaction also delivered meaningful balance‑sheet and liquidity benefits to participating credit unions, Corporate One said.
Statements from Participants
“Participating in this transaction strengthens our liquidity profile and supports long-term growth while delivering value back to our members,” Daniel Smith, CFO at the $9.6-billion Wright-Patt Credit Union in Beavercreek, Ohio, said in a statement.
Added Bill Burke, CEO of the $869-million Day Air CU in Kettering, Ohio, in a statement, “Day Air Credit Union is proud to be the first credit union in the nation with less than $1 billion in assets to participate in the issuance of an asset-backed security. We’re looking forward to future cooperative securitizations of Corporate One as part of our ongoing liquidity strategy.”
AAA Ratings
The notes were rated by Standard & Poor’s and Kroll, with the senior tranche receiving AAA ratings. Stifel and Bank of America acted as joint lead managers, Corporate One said.
“This structure proves the scalability of our securitized products platform,” Aaron Rouse, VP, head of securitized products, said in a statement. “By combining multiple sellers in a single transaction, we’ve created a more efficient, flexible model that benefits both credit unions and investors.”
